To help e-commerce businesses navigate the complex world of cryptocurrency, we’ve gathered insights from ten industry professionals, including SEO Managers and CEOs. They provide a range of solutions, from partnering with crypto payment processors to educating customers and incentivizing crypto payments. Dive into their expert advice to overcome the challenges of incorporating cryptocurrency payments into your business.
- Partner With Crypto Payment Processors
- Increase Cryptocurrency Awareness Among Buyers
- Stay Updated on Regulations
- Evaluate TPS Rates and Select Scalable Cryptos
- Convert Crypto Payments into Fiat Currency
- Adopt the Lightning Network for Speed
- Implement Price Protection and Refund Policies
- Separate Crypto Operations From Your Core Business
- Provide Dedicated Crypto Payment Support
- Educate Customers and Incentivize Crypto Payments
Partner With Crypto Payment Processors
A challenge in incorporating crypto payments in an e-commerce firm is their volatility. Crypto values can fluctuate immensely, causing financial risk for the company and consumers. To overcome this, partnering with a payment processor specializing in cryptocurrency can be a viable solution.
They can swiftly convert crypto payments into a stable fiat currency, shielding the company from sudden price shifts. Another strategy is holding some revenue in cryptocurrencies, balanced with the company’s risk tolerance, which can lead to potential long-term gains.
It’s crucial to educate consumers about cryptocurrencies, making sure they understand the inherent risks and rewards.
SEO Manager, Quicklly INC.
Increase Cryptocurrency Awareness Among Buyers
As an e-commerce business owner, one of the major issues that I face in incorporating cryptocurrency payments into my business is that many buyers become hesitant when asked to use cryptocurrency for their purchases.
This happens because of a lack of awareness and security concerns. This problem can only be overcome by increasing cryptocurrency awareness and its potential benefits among buyers.
PR and Content Marketing Specialist, Ubuy UK
Stay Updated on Regulations
E-commerce businesses that want to accept cryptocurrency as payment face challenges such as changing regulations, cybersecurity concerns, and accepting payments. This may make it complicated for e-commerce businesses to understand how they will be taxed on these transactions.
Digital wallets may present new cybersecurity concerns. Also, in order to accept cryptocurrency, e-commerce businesses must either sign up for their own account on an exchange and then set up their website for crypto payments, or use a payment processor.
To overcome these challenges, e-commerce businesses can ensure they stay up-to-date on changing regulations, use multi-factor authentication to increase their site’s cybersecurity, and use a payment processor to make accepting payments easier.
Marketing Consultant, Pelicoin
Evaluate TPS Rates and Select Scalable Cryptos
One significant challenge that e-commerce businesses face when integrating cryptocurrency payments is the transaction per second (TPS) rate and the blockchain’s transaction volume. Bitcoin’s TPS rate of 7 is considerably lower compared to Solana’s impressive rate of 65,000, which surpasses Visa’s TPS rate of 24,000.
The transaction traffic and congestion experienced by Bitcoin and Solana can significantly affect transaction delays. E-commerce businesses must also consider potential transaction fees and ensure customer satisfaction.
To overcome these challenges, businesses should carefully evaluate TPS rates, select scalable cryptocurrencies, implement efficient payment processing systems, and transparently communicate with customers.
Founder, Damp Marketing
Convert Crypto Payments into Fiat Currency
One challenge that e-commerce businesses face when incorporating cryptocurrency payments is the volatility of cryptocurrencies. The value of cryptocurrencies can fluctuate significantly within short periods, posing a risk for businesses in terms of price stability and accounting.
To overcome this challenge, businesses can employ various strategies. One approach is to convert received cryptocurrency payments into fiat currency immediately to minimize exposure to price fluctuations.
Another option is to use payment processors that offer real-time conversion, allowing businesses to receive payments in cryptocurrencies while instantly converting them into the desired fiat currency.
Implementing robust risk-management strategies, closely monitoring the cryptocurrency market, and setting appropriate pricing and policies can also help mitigate the impact of volatility on e-commerce businesses.
Adopt the Lightning Network for Speed
Transaction speed is a major challenge many e-commerce businesses encounter when incorporating cryptocurrency payments. Bitcoin, one of the most widely used cryptocurrencies, is notorious for its slow transaction times because of the inherent limitations of its blockchain network.
The Lightning Network solves this. This secondary layer to Bitcoin’s blockchain significantly enhances transaction speed and scalability. It allows for quick micro-transactions by creating off-chain payment channels between parties. These channels keep the main blockchain uncluttered, thus ensuring faster transaction times.
Akin to keeping a tab open at your local coffee shop and settling it, the Lightning Network allows many transactions to be bundled together before being added to the main blockchain. Adopting such cutting-edge technology simplifies the payment process and establishes your business as a forward-thinking entity in the digital commerce landscape.
MD, Flycast Media
Implement Price Protection and Refund Policies
The price of cryptocurrencies can fluctuate wildly, which can make it difficult for businesses to price their products and services in cryptocurrency. This can also lead to customer uncertainty, as they may be concerned about the value of their cryptocurrency holdings at the time of purchase.
To overcome this challenge, e-commerce businesses can:
1. Use a payment processor that offers price protection. This means that the business will be protected from price fluctuations between the time of purchase and the time of settlement.
2. Set a fixed price in fiat currency. This means that the customer will always know the exact amount of fiat currency they will pay, regardless of the price of cryptocurrency at the time of purchase.
3. Offer a refund policy. This means that customers can be refunded if the price of cryptocurrency falls significantly after they have made a purchase.
CEO, Twibi
Separate Crypto Operations From the Core Business
There are some traps and potential problems for retail—volatility can completely wipe out trading profits and expose the company to default. Trading and risky investments should be kept strictly separate. Accounting and financial reporting can also be affected by additional losses, making it difficult to raise new debt in the future and making a company even more risky.
Using corporate accounts to withdraw cryptocurrency can be a red flag for many banks and violate the terms and conditions of the service. So, the bank can close such accounts, to which many POS terminals and payment gates can be linked. This is a nightmare for any retailer.
And, of course, there are regulations on cryptocurrency payments in each specific country. If they are not there today, it does not mean that they will not be there tomorrow.
Cryptocurrencies today are still an investment tool, quite risky, and the operations with it should be completely separated from the core business.
CEO, Svet Whisky
Provide Dedicated Crypto Payment Support
E-commerce businesses can provide dedicated customer-support channels specifically for cryptocurrency payment-related queries.
This can include live chat, email support, or even a dedicated helpline to assist customers with any issues they may face while making cryptocurrency payments.
By offering reliable and responsive customer support, businesses can enhance trust, address concerns, and ultimately overcome the challenge of customer hesitation towards cryptocurrency payments.
Co-Founder, Secret Florists
Educate Customers and Incentivize Crypto Payments
One challenge e-commerce businesses face when looking to incorporate cryptocurrency payments is the lack of demand for such payment options among consumers.
Despite the growing popularity of cryptocurrencies, a significant portion of the general population still does not actively use or own cryptocurrencies. This limited adoption can create a hurdle for businesses seeking to integrate cryptocurrency payments.
To overcome this challenge, e-commerce businesses can take several steps. Foremost, they can educate their customers about the benefits of using cryptocurrencies, such as enhanced privacy, reduced transaction fees, and faster international transactions.
Businesses can also incentivize cryptocurrency payments by offering exclusive discounts or rewards for customers who choose this payment method. Collaborating with popular cryptocurrency exchanges or platforms can help raise awareness and drive demand for cryptocurrency payments.
VP, EC Nutrition USA
